Service and supply companies dedicated to pipeline protection are coping well with an array of concerns facing their industry.
Uncertainty over the initial impact of recent pipeline integrity and safety regulations is largely resolved, and industry has stepped up to the challenge, according to pipeline protection specialists interviewed for this supplement.
However, a new wave of regulatory standards looms, and questions have arisen anew.
But capacity remains a bigger question, in terms of adequate capacity for supplies and equipment and in human terms.
Regulatory concerns
Most noteworthy among regulatory concerns for the pipeline industry in recent years is the 2002 US Pipeline Safety Improvement Act (PSIA), which has ushered in a daunting new set of challenges for industry to meet in maintaining pipeline integrity.
PSIA requires enhanced maintenance programs and continuing integrity inspections of all pipelines in so-called high-consequence areas (HCAs). Initially, the industry had voiced concerns about its ability to meet PSIA deadlines for implementing effective pipeline integrity management programs. Of special concern are mandates to ascertain and maintain the integrity of the US’s vast network of aging pipelines–much of it unpiggable.
Pipeline companies were required to identify all HCAs by Dec. 17, 2004, and to submit specific integrity management programs to the Office of Pipeline Safety, a part of the US Department of Transportation’s Research and Special Projects Administration.
“With the implementation of regulations requiring integrity management plans for pipeline operators, most operators have completed their first round of assessments and addressed any problems observed. The second round of assessments is coming up in the near future and will bring a whole new set of questions and concerns, leaving operators wondering how to quantify the changes and how to proceed with this new set of data.”i>
– Tom Bubenik, CC Technologies
All pipeline segments within HCAs must be inspected by Dec. 17, 2008, and, if required, remediation plans must be completed within that same timeframe. Non-HCA segments must be inspected by 2012. With certain exceptions, all pipeline segments must be reinspected at least every 7 years.
“While not specifically impacting pipeline protection, one of the biggest issues that is [impacting] and will impact the pipeline industry is the need to reduce emissions. This will affect many facets of the pipeline industry–from reducing emissions of compressor and pump drivers to prohibiting the venting of hydrocarbons to the atmosphere and eliminating fugitive emissions from pipelines.”
– Andy Barden, BJ Process & Pipeline Services
“With the implementation of regulations requiring integrity management plans for pipeline operators, most operators have completed their first round of assessments and addressed any problems observed,” notes Tom Bubenik, director of pipeline integrity for CC Technologies, a DNV company. “The second round of assessments is coming up in the near future and will bring a whole new set of questions and concerns, leaving operators wondering how to quantify the changes and how to proceed with this new set of data.
“If an assessment finds corrosion has increased or decreased 15%, operators need to know how this information affects the integrity of their system and what changes should be made to their integrity management program given this information.
“In order to properly serve pipeline operators, it is the challenge of consultants, such as CC Technologies…to find solutions for integrating all of this data and interpreting the meaning and effects, as well as degradation rates, which is what we are continually striving to do.”
But for the moment, there are no major regulatory issues facing the pipeline industry, according to Andy Barden, division technical manager, BJ Process & Pipeline Services Co.”On a global basis, the inspection of pipelines is not typically regulated, but rather controlled by the individual pipeline operators,” he says. “In the US, the regulations concerning pipeline inspection are now well established and by and large are being met satisfactorily by the inspection companies.”
On the environmental front, however, Barden cites a significant concern regarding pipeline emissions.
“While not specifically impacting pipeline protection, one of the biggest issues that is [impacting] and will impact the pipeline industry is the need to reduce emissions,” he says. “This will affect many facets of the pipeline industry–from reducing emissions of compressor and pump drivers to prohibiting the venting of hydrocarbons to the atmosphere and eliminating fugitive emissions from pipelines.”
Education and training
The greatest concern regarding regulatory and environmental issues really is the education and training of pipeline service companies and regulators alike, contends Richard Norsworthy, director, Lone Star Corrosion Services division of Polyguard Products Inc.
“The industry has grown so rapidly in recent years, the experienced folks are being hired by the new companies so quickly that it is difficult to find experienced replacements,” he points out. “Service companies have been especially hard hit by this problem, as major companies are hiring the better service company employees, which leaves them in a continuous training mode.”
Educating and training their employees, as well as the education of regulators and those using these services and supplies, should be of the utmost concern, Norsworthy claims.
“I see companies ignoring the real causes of external corrosion, while embracing certain technology that only allows the problem to continue. In some cases, companies simply do not want to spend the money and time to correct the external corrosion problems before they require more expensive repairs, leaks, or more serious complications.”
– Richard Norsworthy, Polyguard Products
“There are many topics not properly taught, understood, or [are] influenced by commercial advantage,” he says. “The basic principles of pipeline protection from external corrosion are many times overlooked for what is considered to be newer, faster, or more technically advanced.
“I see companies ignoring the real causes of external corrosion, while embracing certain technology that only allows the problem to continue. In some cases, companies simply do not want to spend the money and time to correct the external corrosion problems before they require more expensive repairs, leaks, or more serious complications.”
“The ILI industry is required not only to meet these demands [for services created by aging infrastructure]–i.e., successfully managing to navigate through this hostile environment without incident, all the time collecting integrity data–but do so under the constant and continuous scrutiny that is today’s regulatory environment.”
–Keith O’Connor, Weatherford Pipeline & Specialty Services
Skills gap
The lack of qualified personnel is having an impact on construction of new pipelines, according to Barden.
“In the new construction business, the demand for new pipelines is certainly stretching the industry beyond its existing capacity,” he says.” The big issue is a shortage of skilled labor rather than equipment.”
Bubenik believes that industry can keep up with growing demand for skilled workers, “but only through well-planned recruitment, training, and retention programs.
“The workforce is aging, and there is fierce competition for talent. It is important to recruit, train, and retain this talent in order to be able to continue to supply the best possible service to our customers and keep up with growing demands.
“It is also important to transfer the knowledge and experience gained by more-experienced staff members to less-experienced staff members.”
Other capacity concerns
Beyond the human element, there remain other concerns about capacity of the pipeline protection service and supply industry, especially given an outlook for growing demand for new pipeline mileage, while simultaneously trying to address the heightened emphasis on pipeline integrity and safety of the existing aging infrastructure.
“The plant coating capacity worldwide is under severe strain, which can delay or threaten the quality of some projects.”
– John Muncaster, Polyguard Products
“For the pipeline inspection business, the big surge in activity was caused by the introduction of new regulations governing pipeline integrity in the US several years ago,” Barden notes. “For a couple of years this caused a shortfall in availability of tools to meet the increased demand.
“Recently, several new players have entered the market, and all the major players have increased their capacity to the point that supply is now able to meet the demand in the market.
“The addition of new mileage in terms of new construction will not have a major impact on the inspection business, as these will not typically be inspected for 5 years, and the market will be able to keep pace with this advance notice.”
Nevertheless, it is the demand for inline inspection (ILI) services for the existing–and aging–infrastructure that is a primary concern to Keith O’Connor, vice-president, Weatherford’s Pipeline & Specialty Services group, which provides magnetic flux leakage and ultrasonic ILI services.
“Not only does this infrastructure exert tremendous demands on the actual physical tool design process–due in part to the inherent construction practices of the past, where fitting type, bend radius, and consistent pipe diameter were not seen as issues–but also the myriad types and morphologies of anomalies resident in these pipelines,” he says.
“The ILI industry is required not only to meet these demands–i.e., successfully managing to navigate through this hostile environment without incident, all the time collecting integrity data–but do so under the constant and continuous scrutiny that is today’s regulatory environment.”
Norsworthy notes that the pipe coating industry is also having a problem with keeping up with demand, especially with pipe needed quickly.
“Coating suppliers such as ours will be placed under demands to keep up with supply, which means more shifts, etc.,” he points out. “With the aging infrastructure, field-applied coating systems will be much more in demand, especially if more stringent regulations are placed in effect.”
His colleague at Polyguard, John Muncaster, president, Polyguard Products Inc., takes that view a step further, adding, “The plant coating capacity worldwide is under severe strain, which can delay or threaten the quality of some projects.
“To a limited extent, corrosion coatings such as Polyguard’s can relieve this shortage. Our products are mostly used on girth welds/field joints but can be used on the full line and indeed have been on large rehabilitation projects.”
Readiness
Donald Brown, president, CC Technologies, couches the debate over the skills gap and capacity shortages weighed against increased demand and heightened environmental and safety concerns in a big-picture context.
“In addition to what has been discussed, it must be noted that a pipeline is generally one small, yet significant, part of a large, complicated supply chain transporting valuable raw materials, products, or fuel from the supplier to the consumers,” he says. “The loss of availability or reliability of the line may be detrimental to more than the operator, but how often are the potential consequences on the whole supply chain considered? How are the suppliers affected, and what about the consumers at the other end of the network?
“This is a concern for the future, as many of these networks are at capacity. Redundancy costs money, and the ultimate impact of an outage may be felt by more than those directly affected.
“With this in mind, are we ready for failure? If it happens, do we know how to recover, by what means, and how quickly? How prepared is the industry to continue operating in a demonstrably safe and responsible way? These are factors that go beyond technology, but all the same, are real concerns of operators, shareholders, stakeholders and society alike.” ]
Pipeline system reliability “is a concern for the future, as many of these networks are at capacity. Redundancy costs money, and the ultimate impact of an outage may be felt by more than those directly affected. With this in mind, are we ready for failure? If it happens, do we know how to recover, by what means, and how quickly? How prepared is the industry to continue operating in a demonstrably safe and responsible way? These are factors that go beyond technology, but all the same, are real concerns of operators, shareholders, stakeholders and society alike.”
– Donald Brown, CC Technologies